Thursday’s small-cap stocks to watch

Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.

Stingray Digital Group Inc. (RAY.A-T; RAY.B-T) reported revenue of $34.7-million in its second quarter ended Sept 30. compared with revenues of $31.2-million for the same period a year ago.

Net income of $800,000 or a penny per share compared to a net loss of $3.4-million, or 7 cents a year ago. "The increase was mainly attributable to lower legal fees and higher operating results, partially offset by higher income tax expense and depreciation," the company stated.

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Adjusted net income was $6.7-million or 12 cents per share compared to $5.4-million or 10 cents a year ago, "as higher operating results were partially offset by higher depreciation and income net tax expense."

Analysts were expecting adjusted earnings of 14 cents and revenue of $35.2-million.

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Yellow Pages Limited (Y-T) reported revenues of $130.2-million in the third quarter as compared to $175.7-million for the same period last year. Analysts were expecting revenue of $138.2-million. The company said the year-over-year decline was due to both digital and print revenue declines in all segments and to the divestitures that occurred in the second and third quarters of 2018, the company stated.

The company recorded net earnings of $27.1-million or $1.03 per share as compared to a net loss of $7.2-million or 27 cents during the third quarter of 2017. "The improvement in net earnings is mainly due to higher Adjusted EBITDA, decreased depreciation and amortization expenses, a gain on the sale of the assets related to the operations of RedFlagDeals and a reversal of income tax provisions of $18.3 million recorded with respect to previous taxation years," the company stated.

The company also said it's making a redemption payment of $115.4-million, including accrued and unpaid interest of $900,000 on its senior secured notes on Nov. 30.

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Enghouse Systems Ltd. (ENGH-T) said it has acquired Telexis Solutions B.V. and Telexis B.V. of The Netherlands, a technology provider offering public transport agencies/operators e-ticketing solutions.

"Telexis Solutions has a strong position in the Dutch market with systems that are a natural extension to Enghouse Transportation solutions," said Brad Cameron, general manager, Enghouse Transportation.

The company says it is rescinding next year's guidance due to challenges the Toronto-based restaurant chain is experiencing in achieving its forecasted store growth, sales, expenses and earnings.

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The company says its net loss attributable to shareholders was US$459,000 or one cent per share during the period ended Sept. 30. That's compared with a US$514,000 or two cents per share loss a year earlier.

Sales for restaurants open at least a year, a key retail metric, decreased 0.8 per cent compared with a same-store sales growth of 5.1 per cent in the third quarter of 2017.

Total revenues increased 27 per cent to US$5.6 million, from US$4.4 million a year earlier as it added 10 net new locations.

Freshii was expected to earn four cents per share on US$6.07 million in revenues, according to analysts polled by Thomson Reuters.

-The Canadian Press

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DHX Media (DHX-T; DHXM-Q) has signed a definitive agreement to sell its Halifax animation studio. “The sale is part of the company’s ongoing strategic shift to focus and streamline its production operations,” the company stated. The price wasn’t disclosed in the release.

The sale does not include This Hour Has 22 Minutes, which continues to be owned by DHX Media and produced in Halifax, the company said.

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American Hotel Income Properties REIT LP (HOT.UN-T) said third-quarter revenue came in at US$88-million, down from US$90.3-million a year earlier, “primarily due to significant displacement caused by renovations at the three Embassy Suites hotels, which negatively impacted revenue by approximately US$2.2-million.”

Net income for the third quarter was US$4.2-million or 5 cents per unit, compared to net income of US$8.8-million or 11 cents a year ago, as a result of lower hotel income. Analysts were expecting revenue to come in at US$92.2-million and earnings to be 9 cents per share.

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Just Energy Group, Inc. (JE-T; JE-N) reported sales of $956.8-million in its second quarter up from $851.9-million a year earlier and ahead of expectations of $914.4-million.

Its loss was $21.5-million or 16 cents per share versus a loss of $64.9-million or 48 cents a year earlier.

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Tucows Inc. (TCX-Q; TC-T) reported revenue of $83.5-million in the third quarter compared with $85-million for the same period last year.

Net income increased 55 per cent to $5.3-million, or 50 cents per share from $3.4 million or 33 cents per share a year ago, the company said.

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AirBoss of America Corp. (BOS-T) said third-quarter sales increased 8.3 per cent to US$77.8-million compared to the third quarter of 2017. Analysts were expecting revenue of US$80.7-million in the latest quarter

Net income was US$1.3-million or 6 cents per share versus US$2.8-million or 12 cents a year ago.

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goeasy Ltd. (GSY-T) reported third-quarter revenue of $130-million, an increase of 26.5 per cent over the same period in 2017. Analysts were expecting revenues to come in at $132.3-million.

"The increase was driven by the growth of the easyfinancial consumer loan portfolio, which reached $750-million by quarter's end, up 58.5 per cent from $473-million as at September 30, 2017," the company stated.

Net income in the third quarter was $14.3-million or 97 cents per share, up from $11.6-million or 81 cents in 2017. Analysts were expecting earnings of 94 cents per share in the latest quarter.

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Knight Therapeutics Inc. (GUD-T) reported revenues of $3.2-million in the third quarter, a 73-per-cent increase from $1.8-million a year ago and ahead of expectations of $2.3-million.

Net income was $12.9-million or 9 cents per share an increase of 260 per cent compared to $3.6-million or 2.5 cents a year ago. Analysts were expecting earnings of 2 cents per share in the latest quarter.

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Western Forest Products Inc. (WEF-T) reported revenue of $292.5-million in the third quarter up from $285.2-million a year earlier.

Net income was $15.1-million or 4 cents per share versus $13.6-million or 4 cents a year ago. Analysts were expecting earnings of 5 cents in the latest quarter.

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Medical Facilities Corp. (DR-T) said its third-quarter revenue increased to US$104.2-million up from US$89-million a year ago. Net income was US$8-million or 7 cents per share versus net income of US$2.4-million or a loss of 11 cents a year earlier.

Analysts were expecting revenue of US$101.8-million and earnings of 12 cents in the latest quarter.

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Cascades Inc. (CAS-T) reported sales of $1.1-billion in the third quarter, which was an increase of $69-million or 6 per cent versus a year ago and in line with expectations. Net earnings of $36-million or 38 cents per common share, compared to net earnings of $33 -million or 35 cents per common share in the same period of 2017.

Tickers mentioned in this story

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